Uttar Pradesh govt offers 25% additional subsidy for semiconductor units

12 Sep 2024

The Uttar Pradesh government is exploring the possibility of hosting semiconductor fabrication units in the state with potential subsidies of over 75 per cent of their capital cost, chief minister Yogi Adityanath said a press conference alongside the SEMICON India event in New Delhi.

He said the state government will be providing capital subsidy of an additional 25 per cent over and above the 50 per cent subsidy provided by the central government.

Further, he said the state government will also offer land at lower rates and offer special incentives for Fortune 500 companies.

Addressing the media, union minister for electronics and IT, Ashwini Vaishnaw, said Uttar Pradesh will soon join the select list of states in India having semiconductor fabrication units.

Goel said the central government has so far approved a total of five semiconductor projects in Gujarat and Assam, completing the first phase of setting up semiconductor units in the country. Of these construction work on two projects has already begun while work on the other three will begin soon.

Vaishnaw said there are also other attractive proposals that are currently under review and will soon be presented to the cabinet for approval. 

The India Semiconductor Mission (ISM) will focus on expanding the semiconductor ecosystem and include support for specialized materials, he added.

During the second phase, expected to roll out in the next 3-4 months, ISM will introduce an expanded version of the programme. It will also undergo detailed consultations to decide on the next steps, Goel said.

The idea, he said, is to create a comprehensive semiconductor ecosystem, incorporating production and supply of specialised materials, to bolster India's semiconductor market.

SEMICON India is a strategic event, which provides a platform for all major semiconductor manufacturers and suppliers.

More than 250 companies from 24 countries are participating in SEMICON India 2024 being held at Bharat Mandapam in New Delhi from 11 to 13 September.